Betting USA published an interview with Kambi CEO Kristian Nylén, focused on the company's position in the US market and key industry trends. The conversation covered the growth of the in-play segment, the connection between retail and online products, and the influence of a B2B supplier on odds and risk management for operators.
Suppliers "under the hood" of American sportsbooks
When it comes to betting in the US, consumer brands such as DraftKings, FanDuel, and BetMGM tend to dominate the conversation. However, behind these companies operate B2B platforms that provide lines, trading, and operational infrastructure. Kambi holds one of the leading positions among such suppliers.
Kambi's partners include DraftKings, BetRivers (Rush Street Interactive), BetParx, and a number of other operators. The company has completed more online launches than many competitors and has gone live at more than 45 venues in states that legalized betting following the repeal of PASPA. Partners have collectively reached approximately 40% market share in several competitive jurisdictions, and Kambi leverages the accumulated data to improve its product.
Kambi's starting position
Nylén described the company's position as strong. Partners operate in approximately twelve competitive markets, and the open platform and API allow operators to build unique, branded applications. As an example, the Kambi CEO pointed to what Penn National Gaming, Rush Street Interactive, and DraftKings have built on the company's technology.
"Our open platform and API give operators a blank canvas to create their own products," Nylén noted. New states are expected to open in 2021, and ambitious partners are preparing for expansion.
In-play (live) betting and instant markets as the main competitive frontier
In Nylén's view, in-play (live) betting will be the key battleground. As the number of states permitting mobile betting grows and the audience matures, sportsbooks with a best-in-class in-play product will move to the forefront. What matters most is not an endless number of markets, but surfacing relevant options at decisive moments in a match.
In the current NFL season, the share of instant markets — such as the outcome of the current play — within in-play betting grew from 10% to 30% of in-play handle. "Those who offer a best-in-class in-play product — not endless, but relevant — will win," the company's CEO emphasized.
Is market growth sustainable over the next two years
When asked whether the industry's current figures represent a spike or a sustainable trend, Nylén answered unequivocally: yes. Growth in mature states such as New Jersey and Pennsylvania may slow, but it will not stop. Illinois, Colorado, and Indiana have significant room for expansion. The online betting market post-PASPA has existed for less than two and a half years, and operators are still in an active customer acquisition phase.
The Kambi story vividly illustrates how a startup can take off by choosing the right niche at the right time. The company placed its bet on B2B infrastructure for sportsbooks long before the US market opened, and found itself in the right place at the right moment. A similar dynamic is now being observed well beyond the United States.
Online sportsbooks are proliferating across the emerging markets of Africa and Asia, as confirmed by numerous analytical reports and data from the review portal bookabetrw.com on online sportsbooks. Each of these new operators is seeking a technological edge, which means that for startups offering infrastructure solutions, a window of opportunity is opening that is comparable to the one Kambi exploited in the US. Turning to the US market, retail sportsbooks continue to play an important role in this ecosystem.
Retail sportsbooks remain part of a unified funnel
Despite mobile betting dominating the news agenda, Kambi views retail venues as a fully-fledged acquisition and retention channel. A positive experience at a casino increases the likelihood that a bettor will continue placing wagers at home and return to the venue. "We don't have two platforms — one platform serves both channels," Nylén explained.
The numbers confirm the effectiveness of this approach. Betting kiosks account for approximately 80% of on-property wagers, while Bring Your Own Device technology reduces queues and increases handle. "A fantastic on-property experience attracts a different demographic — often younger — and they spend more at the casino." Kambi's partners have recorded growth in table games revenue following the launch of a sportsbook product.
At the same time, another niche has opened for technology startups in the betting space: mobile applications. According to survey data, more than 75% of residents in African countries place bets via smartphone. In preparing this article, we found at bookabet.co.tz an extensive list of offerings from the best online sportsbooks, which confirms the established trend. However, the full potential of this tool has yet to be realized, so developers genuinely have significant opportunities ahead.
What the supplier is responsible for in odds and limits
Kambi sets all lines for its partners, both pre-match and in-play. Operators can differentiate pricing through a dedicated tool, adjusting the overall margin or the odds on a specific outcome down to the individual state level. Nylén cited the example of offering more attractive odds on the Colts for bettors in Indiana while maintaining a standard line in other regions.
Risk management is also handled by Kambi, using semi-automated systems and ML algorithms calibrated to each operator's risk appetite. "The network data is our strongest asset — yet individual player data is never shared with us," the company's CEO clarified.
Why Kambi almost always goes live first
Regulatory expertise and a clean operational track record allow Kambi to enter new markets quickly. The company operates exclusively in regulated jurisdictions, declining to work in prohibited ones. The technology stack was built from the outset for rapid adaptation to the varying requirements of different states. "A state-by-state launch is complex, but it is precisely that process which created our opportunity — and that is visible in our history of first go-lives," Nylén concluded.